CIPP summary of Autumn Budget 2017
22 November 2017
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CIPP webcast on Autumn Budget 2017
Introduction Having declined the offer of a more exotic drink and armed with the PM’s cough sweets, the Chancellor Phillip Hammond delivered the 2017 Autumn Budget, taking just over an hour to do so. A “balanced approach” Budget was assured with some fiscal loosening that aimed to get Britain ”firing on all cylinders” and ”fit for the future”. We have also been promised a future full of change (the payroll profession is certainly used to that) and new challenges, but above all new opportunities.
We were given the admission that negotiations with the EU are at a critical stage (who knew?) and that government is preparing for every possible outcome; whilst putting £3 billion aside over the next two years for ”Brexit preparation”.
There was a sprinkling of gags from the Chancellor: “ More maths for everyone, don’t let anyone say I don’t know how to show the nation a good time ” particularly raised a chuckle with us in Policy.
Keeping the devolved administrations on side, Scotland is to receive an additional £2bn, Wales £1.2bn and Northern Ireland £650m. There was good news too for small businesses – the VAT threshold will maintain its current level of £85,000 for the next 2 years and business rate increases will be set by CPI not RPI from April 2018, two years earlier than planned. Stamp duty is to be abolished for first time buyers on properties up to £300,000. In London stamp duty will be abolished for first time buyers for the first £300,000 on properties up to £500,000. Fuel duty for petrol and diesel is to be frozen for another year and, amid the rumours of hikes to alcohol duty, only ”white cider” will be affected from 2019; duty rates on beer, wine, spirits and other ciders will be frozen. Driverless cars are to receive investment and let’s not talk about the Jeremy Clarkson reference and the ”Hammond and May” correlation. We will see increases in both the personal allowance and the higher tax rate threshold from April 2018 and the National Living Wage and National Minimum Wage rate increases recommended by the Low Pay Commission have been accepted by government. A further package of measures was announced to raise £4.8bn tackling tax avoidance and evasion. The scope of Making Tax Digital will not be widened until the system is proved to work and not before April 2020 at the earliest. IR35 will not be extended to the private sector, well, not yet anyway. And surprisingly, there was no mention of any plans to change pensions tax relief.
The Policy Team will of course do a bit of light reading and digest the 86 page long Red Budget Book and advise the profession of any underlying details accordingly.
Please read on for our summary of the key announcements.
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